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BanRep Review: Dovish To Expectations

COLOMBIA
  • On Thursday, the Colombian Central Bank board decided to increase the monetary policy interest rate by 100 basis points to 5.00%. The decision was made by a majority of 5 to 2, with the minority both voting for a 150bp increase.
  • All surveyed analysts had forecasted an acceleration in the pace of tightening with the majority calling for a 150bp rate hike.
  • Link to full press release is here: https://www.banrep.gov.co/es/junta-directiva-del-banco-republica-decidio-incrementar-100-puntos-basicos-pb-tasa-interes-0
  • In the post-meeting press conference, Governor Villar underscored the desire for a gradual approach by noting that the central bank needs to be cautious given uncertainties. This was bolstered by finance minister Restrepo noting that the 100bp increase remains a significant adjustment.
  • The minutes of the meeting are scheduled to be released on April 4, with the next BanRep meeting/decision taking place on April 29.

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